Trump Diesel Export Ban Could Raise Fuel Costs and Disrupt Britain’s Supply
- On September 22, President Donald Trump announced his administration is considering a 90-day diesel fuel export ban to reduce domestic prices ahead of midterm elections.
- Russian oil refineries attacked as many as 15 times since 2022 have reduced diesel production by nearly 30%, tightening global supplies as refinery closures in Europe and the United States since 2019 eliminated spare capacity.
- Europe remains heavily dependent on diesel, with road transport accounting for 77% of consumption and just over 38% of passenger cars running on diesel. US exports to the continent have surged around 37% since last year.
- Goldman Sachs analysts warned that once diesel storage capacity fills, gasoline prices could add $0.30 per gallon per week because these fuels are produced together, though an emergency inventory release might cushion the impact by about 50%.
- Georg Zachmann, a senior fellow at Brussels-based Bruegel think tank, warned that if the United States blocks exports, the EU could retaliate by exporting less gasoline, effectively "making both sides worse off" by raising both regions' fuel prices.
33 Articles
33 Articles
The US is considering export restrictions on diesel. Europe is likely to be most affected by this. What does this mean for the prices at German petrol stations – and could diesel become scarce?
A ban on the export of diesel fuel from the United States could cause a significant chain reaction, causing a decline in the world ' s oil reserves, and would ultimately harm American consumers, alerting analysts to Wood Mackenzie.
Why diesel prices are soaring and what it means for Europe
Trucks, farms and industry are powered with diesel. Now prices are soaring due to refinery disruptions, supply shortages and geopolitical tensions. A potential US export ban could make Europe's diesel crunch even worse.
Goldman expects initial diesel price decline under US export curbs
Goldman Sachs said on Saturday that a US diesel export ban would initially put moderate downward pressure on diesel prices, and that restrictions on exports, including quotas, were a plausible outcome.
The consequences of a US-sponsored ban on the export of diesel fuel could be catastrophic for Britain, as reported in the British newspaper Telegraph.
What a US diesel export ban could mean for energy markets globally, and India
A proposed US curb on diesel exports has rattled an already tight global fuel market, raising fears of higher prices and deeper supply shortages. India, as a net diesel exporter, could benefit from stronger demand and better export margins.
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